IFRIC 22: Difference between revisions
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''Financial reporting - foreign exchange'' | ''Financial reporting - foreign exchange''. | ||
IFRIC 22 is an Interpretation of IAS 21 (The Effects of Changes in Foreign Exchange Rates). | IFRIC 22 is an Interpretation of IAS 21 (The Effects of Changes in Foreign Exchange Rates). | ||
Revision as of 10:41, 9 November 2018
Financial reporting - foreign exchange.
IFRIC 22 is an Interpretation of IAS 21 (The Effects of Changes in Foreign Exchange Rates).
The Interpretation deals with consideration paid or receive in advance.
It covers foreign currency transactions when an entity recognises a non-monetary asset or non-monetary liability arising from the payment or receipt of advance consideration before the entity recognises the related asset, expense or income.
Under IFRIC 22:
- The date of the transaction, for the purpose of determining the exchange rate, is the date of initial recognition of the non-monetary prepayment asset or deferred income liability.
- If there are multiple payments or receipts in advance, a date of transaction is established for each payment or receipt.
Effective from January 2018.
